May 6, 2015: Prime Minister David Cameron addresses his campaign rally for the General Election at the Harris & Hetherington Livestock Mart in Carlisle, Cumbria(Chip Somodevilla/Getty Images)

Sterling leapt to a one-week high against the US dollar off the back of an exit poll from the UK general election which suggests the Conservatives will outperform expectations and likely form a new government.

The British pound hit $1.5448 after rising by two cents following the shock exit poll, which projects the Conservative party will win 316 seats, just seven short of a majority, off the back of Labour wipe out in Scotland at the hands of the Scottish National Party (SNP).

Markets have been concerned about the potential instability from a weak government in the UK.

In particular, they are concerned about a minority Labour government propped up by smaller left-wing parties, including the SNP, which oppose the current austerity programme to close the gaping deficit in Treasury finances with public spending cuts.

David Cameron, the Conservative leader, has committed to another five years of tough austerity and spending cuts in order to balance the Treasury's books over the course of a single parliament.